Panthera, one of Australia’s biggest debt collection firms, has been sold and its brand will cease to exist after claims that it circumvented a blacklisting barring it from operating in Victoria.
Panthera has been mired in scandal since the federal court found in 2020 that it had unlawfully harassed Australians for money they did not owe.
In Victoria, the federal court ruling automatically triggered a blacklisting banning Panthera from buying or collecting debts.
A Guardian Australia investigation earlier this year revealed that Panthera had allegedly circumvented that blacklisting and continued operations in Victoria, again chasing debts from individuals who owed nothing, including a 10-year-old boy with autism.
In some cases, the Guardian revealed that Panthera had bought debt from major telcos and energy retailers within weeks of receiving direct warnings from the regulator, Consumer Affairs Victoria, that continuing to engage in debt collection could amount to a criminal offence.
CAV launched legal action against Panthera in July, alleging it had breached the blacklisting. The case is still ongoing and no plea has been entered.
Administrators were also brought in to sell off large parts of the business.
On Thursday, Francom Group, which operates existing debt collection and legal services, announced it had bought Panthera.
The Panthera brand will now cease to exist and 200 existing staff at the debt collection giant will now work under the Francom banner.
Francom said it would seek to resolve the legal proceedings against Panthera “as quickly as possible”.
It would also seek to “transform the perceptions and practices of the debt collection industry” and would take a “strong moral and ethical focus, based on robust corporate social responsibility”.
“Under new ownership and management, Panthera’s operations will be realigned with Francom Group’s approach, which is underpinned by ethical leadership, flexibility, transparency and education,” Francom said in a statement.
The acquisition has been backed by Canadian investment company Brookfield, which has previously provided a massive capital injection to Panthera.
The legal proceedings against Panthera were due to be mentioned in the Melbourne magistrates court on Wednesday, but were adjourned at the last minute.
CAV has been approached for comment.
